By Sharon Chennault
If you are attempting to rebuild damaged credit, department andgas station credit cards may be a good solution. As opposed tobank credit cards, gas and department store cards are easier tobe approved for and even if your credit is damaged, you mayqualify. It is very important to use them solely for the purposeof rebuilding your credit. If you overspend or misuse the cardsyou could easily wind up with credit difficulties again.
After you apply and are approved for a gas or department storecredit card, you should make only limited purchases and pay yourbalance in full each month. These types of credit cardsgenerally have a higher interest rate and letting your balanceincrease steadily can cost you a lot of money in interestcharges. Make sure you pay on time, in full each month and ifyou feel as if you have waited too long to mail your payment, goto the customer service department in the store and pay yourbill in person. Keep in mind that just because these types ofcredit cards are easier to be approved for, this does not meanyou should apply for many of them. When lenders look at yourcredit report and see numerous open credit accounts, they willlook less favorably upon your request for more credit.
Once you have established a payment history with your gas anddepartment store credit cards, you will have to decide whetheror not it is in your best interest to keep the cards. If youhave built up your credit sufficiently, you would be better offclosing these accounts and using a bank issued credit card witha lower interest rate to make these same purchases. Many peoplethink of only purchasing gas with a gas station credit card, butthe fact is these cards can be used for repairs if your carbreaks unexpectedly or you can use the card to purchase snacksand meals while traveling as most gas stations in remotelocations have restaurants or fast food establishments locatedinside. Gas station credit card may also give you rewards suchas discounts on travel, hotels, car rentals, and insurance.
Department store credit cards can provide you with benefits aswell. Department stores generally carry a wide range ofmerchandise. Appliances, house wares, tools, clothing,cosmetics, and jewelry are just a few of the items you can findinside most major department stores. Holiday purchases can bemade with a department store credit cards as well as necessaryitems for special occasions and gift giving. Remember to keepyour spending manageable and pay your balance in full eachmonth. Higher interest rates that typically accompany gasstation and department store credit cards can really add up ifyou do not monitor your spending carefully. The point is torebuild your credit, not to incur more debt that you cannotafford to repay.
Department store and gas station credit cards can be verybeneficial to your quest to rebuild your credit. Make sure youdo not get carried away with your spending. Your credit reportwill reflect your efforts in a relatively short period of timeand your credit score will rise with each timely payment youmake. Without a good credit report it is extremely difficult toobtain a mortgage or new car loan. Use your credit cards wiselyand do not charge more than you can afford to repay each month.Gas station and department store credit cards are a great way tobegin rebuilding damaged credit
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